Blackstone acquires Israel’s Priority Software at an $800 million valuation
Blackstone acquires Israel’s Priority Software at an $800 million valuation
This marks the largest deal for the alternative asset manager in the country since it opened its offices in 2021.
Blackstone has announced that Blackstone Growth and affiliated funds have entered into an agreement to purchase a majority stake in Israeli enterprise software company Priority Software at an $800 million valuation, higher than initially reported by CTech this month. This marks the largest deal for the alternative asset manager in the country since it opened its offices in 2021.
"The decision by Blackstone to partner with Priority Software is a testament to the strength of our business and the tremendous market opportunity that lies ahead,” said Sagive Greenspan, CEO of Priority Software. “With Blackstone's support, we are well-positioned to accelerate our growth trajectory, deepen our market penetration, and solidify our position as a leader in the industry. We are excited about the possibilities this partnership brings and remain steadfast in our commitment to driving unparalleled value for our customers and stakeholders."
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Senior Managing Director at Blackstone Yifat Oron (right) and Managing Partner of Fortissimo Capital Yuval Cohen.
(Photo: Amit Shaal and ValueX)
Priority Software offers mission-critical business applications and ERP solutions across a variety of industries, helping business management through cloud-based applications. Its product suite includes solutions for retail management, hospitality, and education, and is supported by a network of more than 100 partners worldwide. The company has more than 17,000 customers and over 300,000 end users across multiple end markets as well as 500 employees located across five offices in Israel, the U.S., and Belgium.
"Priority Software has grown into a leader within the ERP market by developing business application software – both horizontal and vertical – that caters to the holistic needs of companies across sectors from their early days, through every stage of growth and, ultimately, at scale,” added Yifat Oron, Senior Managing Director at Blackstone and head of its Israel office. “Given our extensive experience in the software space – as well as the significant insight we glean from our global reach and more than 230 portfolio companies, including in hospitality, industrials, life sciences, energy and beyond – we believe Blackstone is well-positioned as a growth partner for this exceptional business."
Blackstone manages assets amounting to 1.06 trillion dollars (as of the end of the first quarter of 2024), making it the largest private equity fund in the world in terms of assets under management. Blackstone is traded on the New York Stock Exchange (NYSE) with a market capitalization of $145 billion.
Blackstone is acquiring Priority from Israeli private equity fund Fortissimo (50%), managed by Yuval Cohen, and the American investment fund TA Associates. TA Associates acquired 50% from Fortissimo in 2020 at a company value of $250 million. After TA's entry, Priority made a series of purchases of other companies worth approximately NIS 400 million (approximately $107 million). The total volume of purchases made by the company since Fortissimo acquired it in 2013 is NIS 800 million ($215 million).
